Electric cars to be cheaper than petrol models before 2030
Global demand for electric cars is poised to explode in the coming decade, yet formidable challenges remain. Range anxiety is a major concern for many potential buyers, while charging infrastructure is still lacking in many countries. But perhaps the biggest hurdle to mass EV acceptance is how much an electric vehicle costs.
The lithium ion batteries that electric vehicles need to ensure a reasonable driving range between charges are incredibly expensive at the moment, but the good news is that as production scale increases, these prices are coming down.
But how long will it take before an electric vehicle is cheaper to produce than the equivalent petrol-engined variant? As first reported by The Guardian, BloombergNEF is forecasting that larger electric vehicles will reach cost parity with their combustion engined counterparts by 2026, while smaller and more affordable vehicles should reach that level by 2027.
Interestingly, the report also predicts that by the year 2030 an average medium-sized electric vehicle on sale in Europe will actually be 18 percent less expensive than the equivalent petrol or diesel model, and that’s before taking any taxation differences into account. In fact, at this cost level subsidies and incentives simply won’t be needed.
